The Economics of Innovation and Technology

4.

Diffusion and Adoption of Technology

4.1.

Theories of Technology Diffusion

4.1.1.

Epidemic Models

4.1.1.1.

4.1.1.1.1.

Innovation and Imitation Effects

4.1.1.1.2.

Parameter Estimation

4.1.1.2.

S-Curve of Adoption

4.1.1.2.1.

Adoption Rate Patterns

4.1.1.2.2.

Market Saturation

4.1.2.

Rank, Stock, and Order Effects

4.1.2.1.

Early Adopters vs Late Majority

4.1.2.1.1.

Adopter Categories

4.1.2.1.2.

Adoption Timing Benefits

4.1.2.2.

Cumulative Adoption Dynamics

4.1.2.2.1.

Network Size Effects

4.1.2.2.2.

Critical Mass Thresholds

4.1.3.

Information Cascades and Social Learning

4.1.3.1.

Role of Social Networks

4.1.3.1.1.

Information Transmission

4.1.3.1.2.

4.1.3.2.

Herd Behavior in Adoption

4.1.3.2.1.

Conformity Effects

4.1.3.2.2.

Bandwagon Effects

4.1.4.

Probit Models of Adoption

4.1.4.1.

Threshold Models

4.1.4.2.

Heterogeneous Adoption Decisions

4.2.

Factors Influencing Adoption Rates

4.2.1.

Economic Benefits and Costs

4.2.1.1.

Cost-Benefit Analysis

4.2.1.1.1.

4.2.1.1.2.

Expected Benefits

4.2.1.2.

Return on Investment

4.2.1.2.1.

Payback Periods

4.2.1.2.2.

Net Present Value

4.2.2.

Uncertainty and Information

4.2.2.1.

Information Asymmetry

4.2.2.1.1.

Quality Uncertainty

4.2.2.1.2.

Performance Risk

4.2.2.2.

Learning by Using

4.2.2.2.1.

Experience Effects

4.2.2.2.2.

Learning Curves

4.2.3.

Firm Characteristics

4.2.3.1.

4.2.3.1.1.

Resource Availability

4.2.3.1.2.

4.2.3.2.

4.2.3.2.1.

Competitive Position

4.2.3.2.2.

Strategic Considerations

4.2.3.3.

Organizational Structure

4.2.3.3.1.

Decision-Making Processes

4.2.3.3.2.

Innovation Culture

4.2.4.

Market and Social Structure

4.2.4.1.

Industry Networks

4.2.4.1.1.

Supplier-Customer Relationships

4.2.4.1.2.

Industry Associations

4.2.4.2.

Cultural and Institutional Factors

4.2.4.2.1.

Regulatory Environment

4.2.4.2.2.

4.2.5.

Technology Characteristics

4.2.5.1.

Relative Advantage

4.2.5.2.

4.2.5.3.

4.2.5.4.

4.2.5.5.

4.3.

Network Effects and Standards

4.3.1.

Direct Network Externalities

4.3.1.1.

User-to-User Benefits

4.3.1.2.

Network Size Effects

4.3.2.

Indirect Network Externalities

4.3.2.1.

Complementary Products

4.3.2.2.

Platform Ecosystems

4.3.3.

Positive Feedback and Lock-in

4.3.3.1.

Path Dependence

4.3.3.1.1.

Historical Accidents

4.3.3.1.2.

4.3.3.2.

Switching Costs

4.3.3.2.1.

4.3.3.2.2.

Compatibility Issues

4.3.4.

Standards Wars and Competition for the Market

4.3.4.1.

Historical Examples

4.3.4.1.1.

4.3.4.1.2.

4.3.4.2.

Strategic Standard Setting

4.3.4.2.1.

Coalition Building

4.3.4.2.2.

Timing Strategies

4.3.5.

The Role of Compatibility and Interoperability

4.3.5.1.

Open vs Proprietary Standards

4.3.5.1.1.

Standard Setting Organizations

4.3.5.1.2.

Industry Consortiums

4.3.5.2.

Impact on Market Structure

4.3.5.2.1.

Market Concentration

4.3.5.2.2.

4.3.6.

Two-Sided Markets and Platforms

4.3.6.1.

Platform Economics

4.3.6.1.1.

Multi-sided Markets

4.3.6.1.2.

Platform Competition

4.3.6.2.

Cross-Side Network Effects

4.3.6.2.1.

User-Developer Interactions

4.3.6.2.2.

Ecosystem Development

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5. Innovation, Market Structure, and Firm Strategy